Special value of investments in a market economy

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value of investments in a market economy appears in their definition.Indeed, they can be assigned ordinary cash resources, bank deposits, stocks, shares and other securities, as well as machinery, technology, equipment and licenses.We should not forget about property rights and intellectual property that can be invested in any object of entrepreneurial activity for profit in the future and to achieve the effect of high social value.Investments and their role in the economy are determined by their financial definition.It is, basically, assets invested in economic activities to generate income.

With the economic definition of an investment represented by the costs associated with the formation of fixed and working capital.Any changes in inventories can be explained by movements in the cost of fixed assets.The value of investments in a market economy is clearly displayed in the process of investing some funds in various forms, which is inextricably linked to produce any effect or just income.Investing primarily are a resource, the use of which contributes to obtaining the desired result.

Thus, the role of investments in a market economy appears in close cooperation the two sides of the investment character of resource costs and benefits.The absence of the desired result by using investment shows their uselessness.The importance of investments in a market economy is confirmed by the use of certain funds as a capital investment of different nature (short-term or long-term).Investing can be both legal and natural persons.The literature known the following types of investments: venture capital, portfolio, annuities and straight.

In Russia the importance of investments in a market economy can not be overestimated.For example, investments can be made when creating entities with the participation in the share of foreign capital equivalent.The main problem of the modern Russian business is lack of incentives to attract foreign capital.Today, therefore, considered to be the current two questions: In what industry borrowing is necessary to limit the scope in which the influx of additional capital should be made in the first place.Foreign investment can be brought in the form of direct and portfolio "infusion" of money.

Another direction of inflow of additional capital - loans.In the financial market there is also such a thing as a real investment, capital represented by investments in real estate, land, equipment, machinery and spare parts.This type of investment may also include the cost of working capital.